Management Accounting Report: Business Development at Unilever

This report provides a comprehensive overview of management accounting, focusing on its application within a business context, specifically using Unilever as a case study. It begins with an introduction to management accounting and its role in decision-making, emphasizing the importance of accurate financial management. The report then delves into various management accounting systems, including cost accounting, job costing, price optimization, and inventory management, evaluating their benefits and drawbacks. It also explains different methods used in management accounting reporting, such as budget reports, cost management accounting reports, and performance reports, highlighting their significance in measuring and improving business performance. The report further examines the application of management accounting techniques, including planning tools for budget preparation and forecasting, and analyzes how these techniques contribute to organizational success by addressing financial problems. The conclusion summarizes the key findings, emphasizing the critical role of management accounting in achieving sustainable business development and financial stability.

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Explaining management accounting system and its elements................................................1
M1 Evaluating the benefits of different types of management accounting systems...................2
P2 Explaining different methods that can be used for management accounting report..............4
LO2..................................................................................................................................................6
P3 Applying management accounting techniques.......................................................................6
.....................................................................................................................................................7
M2 Accurately applying MA techniques for producing financial reporting documents.............8
LO3..................................................................................................................................................9
P4 Usage of different planning tools and its application for preparation and forecast of
budgets.........................................................................................................................................9
M3 Analysing the usage and application of different planning tools........................................10
LO4................................................................................................................................................11
P5 Analysing how responding to financial problems and management accounting will lead
organisation to success..............................................................................................................11
M4. Analysing how MA techniques can lead to sustainable success by responding financial
problems....................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
In management accounting or managerial accounting, managers use the provisions of
accounting information in order to better inform themselves before they decide matters within
their organizations, which aids their management and performance of control functions.
Management accounting helps the organization in managing the financial aspects accurately and
efficiently. Management accounting is one of the most reliable concept which can be used by
firm and organization. It aids managers to perform better the financial task. It helps managers in
decision making process and achieving goals and objectives (Ax and Greve, 2017). Report will
highlight basic concepts of management accounting. It will also lay emphasis on methods of
budgeting.
LO1
P1 Explaining management accounting system and its elements
Management accounting in an organisation is for supporting the competitive decisions
making through collection, processing and communication of information that will help
management in planning controlling and elevating business processes & company strategies. For
surviving in competitive market, related to technological advancement, are required to use
advance methods for working over continuous improvement of quality control and reducing cost
of products. In these circumstances organisations are shifting towards modern information
system avoiding traditional system with long term move towards management accounting. Tools
of management accounting are following growing trend over recent years. For meeting the
economic advancement of companies management accounting has emerged with new techniques
and systems helping the Unilever to manage its business. Management is helping company to
meet the needs of modern time’s business. New systems and techniques has helped companies to
manage its accounting needs and requirements (Bobryshev and et.al., 2015). Business cannot run
effectively without management accounting it includes various costing method that companies
adopt as per their businesses.
Cost accounting system
Cost accounting systems refers to framework which is used by companies for estimating costs of
its products for analysing profitability , cost control and inventory valuation. It is critical to
estimate products correct costs in profitable operations. Company must have knowledge about
each product that is prepared by company which product is making profits and which are costing
1

much to company. This can be achieved when accurate cost of each product has been estimated
by company. Unilever is estimating cost of it closing inventory using cost accounting method.
Cost accounting system helps management of company to make business decisions. Corporate
accounting does not have to follow set standards that are flexible in meeting the management
needs unlike financial accounting that is required to provide financial information to external
users. Cost accounting helps Unilever in considering input costs of production that are both fixed
and variable.
Job costing system
Job costing system refers to system that assigns and accumulates manufacturing cost of
individual output unit. It is method to record cost of manufacturing job than of process. Job
costing system is useful when different items that are produced by company are different from
one another and are having significant costing. Job costing requires separate cost records for
items that are significantly varying from each other. Job records of Unilever are required to
report about the about direct material and labour costs which are actually used & assigned cost in
manufacturing overhead. With job costing Unilever is able to keep track over cost of every job,
to maintain data that are relevant to operations of business (Chenhall and Moers, 2015). It is a
specific accounting method that helps Unilever in tracking the expense for creating unique
product. There are advantages and disadvantages of using job costing system.
Price optimisation system
Price optimization method refers to using mathematical analysis for determining the
customer responses over different prices of product and services over different channels. Price
optimization is widely used by organisations to describe prices of applications. Price
optimization issued by companies for enhancing its prices for effectively meeting the
organisations objectives. Price optimisation helps company to meet objective of company like
maximisation of operating profit. Price optimisation for calculating the variations in demand at
various price levels and combining data with details on inventory and costs levels for
recommending prices which will be improving profits (Chiarini and Vagnoni, 2015).
Inventory management system
In the context of Tesco, inventory management system is highly prominent which helps
company in managing records about cost, stock level etc. By applying methods such as LIFO,
FIFO etc business unit can do appropriate valuation of stock.
2

M1 Evaluating the benefits of different types of management accounting systems
Cost accounting system
Advantages
 Cost accounting system help managers of Unilever to eliminate losses, wastes and
inefficiencies through standards. Standards set by company helps to reduce cost of
product.
 Unilever is able to identify reason for increase or decrease in in profit. It help managers
to take remedial actions for maintaining the profitability of company.
 When information of cost is available management is able to make decisions about
whether to purchase or not products from open market. Record of every product is
available with company in costing records (Bromwich and Scapens, 2016).
 Cost accounting is appreciated by managers of Unilever as it is adaptable, can be tinkered
and implemented as per changing requirements of business. Cost accounting is used only
for accounting for internal purposes. Cost accounting is three dimensional which are accounting, calculations and reporting
that could be manipulated by different angles. It helps Unilever by guiding in price
determination, resource allocations and raising capital for meeting the production
requirement.
Disadvantages
 Cost accounting department are available with only cost records where management is
making decisions for future that could be different as costs in previous yaear may not be
same as in succeeding year.
 Accurate cost can be ascertained when only when full capacity is utlized it is not useful
for Unilever when there is partial utilization of capacity.
 Financial costs are not included when calculating the cost product therefore the correct
costs may not be calculated always.
Job costing system
Advantages
 Cost of products can be ascertained on completion of job giving scope for controlling the
cost of products taking suitable steps by Unilever. It helps in recognising profits
separately from each job.
3

 On job completion every component of cost, profit and selling price are comparable with
estimates for controlling and reducing the costs for maximising the profits on every job in
job Costing of Unilever. Unilever is able to identify defects and spoilages arising in each job hence it helps
company to control it.
Disadvantages
 Unilever is required to have effective supervision over job costing as there is no
standardization.
 Company is required to maintain detailed information about job costing which involves
ample amount of clerical work.
 Costs cannot be controlled in job costing by the company as preventive steps are taken
after expenses are incurred in job costing.
Price optimisation system
Advantages
 It helps Unilever to focus and analyse key areas like margin of sale & conversion
numbers. It helps in generating revenues that are noticeable & helps in expansion and
growth of business.
 Requirement of manual work is reduced is reduced under-price optimisation systems
because of which human errors are also reduced in company (Hall, 2016).
 It helps Unilever to regularize its prices over channels in alignment with changing trends
of market, without redundancy. It also helps company to analyse the purchasing pattern of customer and their pricing
preferences, and it assists company in making better decisions.
Disadvantages
 Price optimisation is costly processes that increases cost of company. It increases the
costing of product which is being manufactured by company.
 It is time consuming process and involves technical experts, if the data is not accurately
prices of product will be mispriced.
Inventory management system
Benefits:
 Facilitates uninterrupted production
4

 Reduced storage and ordering cost
 Ensures optimum stock level within firm
Drawbacks:
 Maintenance of stock management software is expensive
 Requires training session for personnel
P2 Explaining different methods that can be used for management accounting report
Budget Reports
Budgeting accounting report are used to measure performance of company and these
report are generated for large organisations departments wise. Unilever creates budget reports for
understanding the strategies of their business. Budget reports are prepared by organisations using
previous experiences related to the budgets. Budgets of company should be prepared keeping in
view estimates that are arising from previous circumstances. Budget reports contain all earning
sources and expenditures that help companies to carry out manufacturing processes accordingly.
Budgets are prepared by companies so that it is achieving its goals and objectives while being
within budgeted figures (Kaplan and Atkinson, 2015). These budgeted report guides manager of
Unilever in cutting costs that are excessive and are not productive. Company is able to allocate
its resources as per the budgeting reports to activities that are generating more profits for
company. It is essential for companies to make budgeted report that control over expenditure of
company can be maintained.
Specimen
Cost Management Accounting Reports
Management accounting helps company in computing costs of product which are
manufactured by company. These report covers everything like material, overheads, labour and
other costs. Cost reports gives summarised form of all the information in manufacturing a
product. Cost report helps manager to analyse and capacity for realizing cost prices of different
5

items with selling prices. These reports help in estimating the profit margins as company is
having clear picture about every costs that are used for manufacturing the products or procuring
article. Cost report helps the managers of Unilever to compare cost of its products with the
budgeted figures. Cost reports are very essential for companies for pricing the product that are
manufactured by company (Malina, 2017). These reports are important as they give the estimates
of the cost of products.
Specimen
6

Performance Reports
Performance reports are essential as they help company to review their performances.
Performance reports are prepared for evaluating the performance of business as well as
employees of company. Performance reports may be generated department wise, product wise,
or even for processes. These may be generated quarterly, monthly or yearly as per the
requirement of organisations. These performance reports help manger of company in making in
7

making critical strategic decision relate to future of organisation. It helps company to lay focus
over the underperforming production processes. Performances of management accounting gives
deep insights about working of company. Performance reports helps the company to analyse the
flaws existing in the processes and procedures. (Nielsen, Mitchell and Nørreklit, 2015)
Performance reports are essential for company for measuring its performances of the strategies
laid by them for their mission. Performance reports asses the difference between the budgeted
and actual figures. After carrying out the differences managers tend to formulate strategies to
remove the differences in the budgeted system. Performance reports give the clear picture about
the success of the product performance. Companies than prepare policies and strategies for
enhancing the performance of the compnay so that it can achieve it desired objectives within the
given time frames. Managers and owner review to know how far the strategic that framed for
particular product or service are effective and whether any modification are required.
Specimen
Variances Cause Recommended action
Labour cost (variance of 1000
words)
Due to having less efficient
personnel variance of £1000
occurred.
Tesco should lay focus on
conducting training session
personnel. This in turn helps
in enhancing their efficiency
level and thereby reduces cost
associated with labour.
Managerial Accounting Reports
Information reports helps company to analyse the accounting of the various cost and
expenditures of the projects. These reports are generated internally within organisation and
outsourced to professionals who are having skills and experience for carrying out the task
appropriately. They are generating profits as managers are preparing report based on
transactions. These reports are helping the organisation to carry out the best practices which will
be helping it to grow in the market. Managerial accounting are prepared by organisation after
recording all the costs and expenditures related to the product and services. This report help
company to prepare reports containing the differences and the estimated cost of accounting.
8

Therefore, it is very essential for companies to prepare accounting reports containing the records
of each and every project that is undertaken by company. These reports are prepared by
companies so that it can have the records of all the projects that are used by companies in future
for making budgeted reports. Managerial accounting report helps company to make comparison
between the costs of manufacturing the different products by company (Otley, 2016).
Specimen
LO2
P3 Applying management accounting techniques
Marginal Cost: Marginal costing technique use to differentiate the variable of cost from
the fixed cost only the variable cost are charged to the unit of the cost. The fix overhead are
entirely excluded by this technique. The cost of production and provide a same cost per unit up
to a certain level of production. Marginal costing do not cover fixed cost therefore it could be
said that it does not represents the actual and reliable results.
Absorption costing: Absorption costing is a method in which both the variable fixed
cost and variable cost are taken into consideration while evaluating the net profit calculation and
therefore gives a truer image as compared to marginal costing (Renz and Herman, 2016). It
includes all the cost that are associated with the manufacturing of a product. It is more preferred
by the organisations as it covers fixed cost associated with the manufacturing of product.
Difference between marginal and absorption costing
Basis Marginal Costing Absorption Costing
Cost consideration Variable costs are included in
product cost where the fixed cost
is considered cost for period.
It considered both variable and
fixed cost as product.
Overheads Variable and fixed cost Production, administration, selling
and distribution.
Determines Cost of next unit Cost of each unit
Purpose For showing emphasis of
contribution in the product cost.
It emphasizes over fair treatment
and accuracy of product cost.
Important aspect Contribution per unit Net profit per unit.
9

Marginal costing
Absorption Costing
M2 Accurately applying MA techniques for producing financial reporting documents
To
Higher Management
Unilever, UK
Date: 12th November 2019
From analysis it is report to the higher management team that company should use the
absorption costing technique to calculate the net profit for the organization as this method used to
give the more relevant answer as compare to the marginal costing technique. The rationale
behind this, under marginal costing, overhead cost whether fixed or variable are charged as
expense. On the other side, in absorption costing method they are directly applied to products. In
other words, with regards to absorption costing system, both fixed and variable costs are
10

To
Higher Management
Unilever, UK
Date: 12th November 2019
From analysis it is report to the higher management team that company should use the
absorption costing technique to calculate the net profit for the organization as this method used to
give the more relevant answer as compare to the marginal costing technique. The rationale
behind this, under marginal costing, overhead cost whether fixed or variable are charged as
expense. On the other side, in absorption costing method they are directly applied to products. In
other words, with regards to absorption costing system, both fixed and variable costs are
recognized as product related. On the contradictory note, marginal costing method considers
fixed cost as periodical. In addition to this, in absorption method, per unit cost is influenced from
variances take place in opening and closing stock. As can be seen by the data that absorption
costing method is showing more amount of the profit as compare to the marginal costing method
i.e. Profit calculated under absorption cost method is 901800 which is 4800 higher as compare to
that of a marginal cost in which the profit is 897000. Another reason behind choosing
absorption cost than the marginal cost is that that costing method does not take fixed overhead
into account which sometime create the situation in which wrong net profit may be calculated as
the fixed cost is also used to play a very crucial role in the success of the organization. Referring
overall evaluation, it can be entailed that business unit should focus on undertaking absorption
system over marginal for determining cost as well as profitability. Hence, by applying such
modern costing system business organization would become able to take suitable decision about
product costing and profit.
But at the same time it can help the company also as marginal cost is easier to calculate
and will also assist the excite company in controlling their production cost in the organization as
it overlooks the fixed costing and avoids unnecessary increase in the cost for expenditures which
are not directly associated with the product. In the end it can be said that the marginal cost can
give the faulty decision when compiling the long term profit of the company. Marginal costing
technique is also not compile with GAAP standard and cannot be used for external reporting
since it distorts the net profit that is responded to the stakeholder.
In order to support the suggest that the organization should use the Absorption costing
11

system, it can be said that under absorption cost both variable and fixed cost is taken into
consideration by the technique while evaluating the net profit will help the company in finding
out the best and the relevant outcome as fixed cost is very important part of the organization.
However there are many disadvantages also of the absorption costing that is skewing the
profitability of the company.
Sincerely
Financial analyst
LO3
P4 Usage of different planning tools and its application for preparation and forecast of budgets.
Budgetary control may be defined as a technique which is undertaken by the firm for
assessing deviations by doing comparison of actual performance in against to the standards.
Further, budget implies for the monetary framework which contains both cash inflow and
outflows pertaining to specific time period. Hence, there are several other tools which can be
undertaken by Unilever for the purpose of planning pertaining to budgetary control:
Capital budgeting: This is one of the most effectual planning tools which helps in
assessing and evaluating the viability of capital projects in monetary terms. Hence, it mainly
includes net present value, payback period, internal and average rate of return (Schaltegger and
Burritt, 2017). Referring such methods Unilever can identify the extent to which proposed
investment will contribute in the financial growth and success of firm.
 NPV – It refers to net present value of the investment made by the company. In other
words, this method presents return which business unit will generate after specific period,
in monetary terms, by considering time value of money concept.
 ARR – Average rate of return method presents mean profitability associated with
investment proposal.
 IRR – It is used for measuring the profitability related to potential investments in
percentage firm. IRR presents suitable view for decision making as it emphasizes on
using time value of money concept while evaluating the viability of project.
 Payback period – It presents times that company will take for recovering ist initial
investments.
12

For example: Business unit has two investment proposal A and B. for the evaluating the
profitability associated with investment option capital budgeting tools have been applied:
Calculation of IRR
Year Cash inflow of project A Cash inflow of project B
-180000 -180000
1 45000 41000
2 56000 50000
3 49000 44000
4 62000 59000
5 71000 66000
IRR 16% 13%
Calculation of NPV
Year
Cash
inflow of
project A
(in £)
PV factor @
10%
Discounted
cash flow of
project A (in £)
Cash
inflow of
project B
(in £)
Discounted
cash flow of
project B (in £)
1 45000 0.909 40909 41000 37273
2 56000 0.826 46281 50000 41322
3 49000 0.751 36814 44000 33058
4 62000 0.683 42347 59000 40298
5 71000 0.621 44085 66000 40981
Total
discounted
cash flows 210437 192931
13

Less: initial
investment 180000 180000
NPV 30437 12931
From evaluation it has found that company should select project A over B. Moreover, by
investing funds in project A, business organization will get £30437 after the period of 5 years.
Besides this, according to the selection criteria company should give priority to the project that
has higher NPV. Accordingly, by investing money in project A firm will ge5t the desired level of
outcome or success.
Advantages
 Helps in making selection of best project out of other alternation available for investment. Assists in doing financial planning effectually
Operational budget: By developing this budget company can meet its debt or obligations to
the significant level and thereby ensures business growth. It mainly focuses on estimating or
forecasting value of resources that needed to carry out operations effectually.
Advantages:
 Helps in developing financial framework considering long- term planning needs Facilitates flexibility in budgeting framework
Flexible budgeting: In this budget, changes take place in volume or \activities as per the
business conditions and environment. This budgeting framework is considered as highly
prominent over static because it enables manager in relation to making changes in the existing
financial framework. Moreover, in the recent times, business environment is highly dynamic in
nature. Thus, referring this, planning for the future can be done effectually.
Advantages
 Assists in doing proper assessment about sales, cost and profitability aspect Provides deeper insight to the management about production level in varied market
Variance analysis and standard costing: From assessment, it has found that by using
such MA tool company can develop competent framework for the near future. Moreover, it
emphasizes on assessing deficiencies take place in financial performance. On the basis of this, by
doing evaluation of actual outcomes with standards company can assess loopholes (Sands and
14

Gunarathne, 2015). In this regard, by finding causes of deviations company can take strategic
measure for the upcoming time period pertaining to improvement aspects.
Advantages
 Gives input for the evaluation of departmental performance
 Helps in taking improvement measures for business growth
M3 Analysing the usage and application of different planning tools
Particulars Capital budgeting Operational
budget
Flexible budget Standard
costing and
variance
analysis
Usage Company uses
this tool for
finding best
investment
proposal out of
several
alternatives
available
(Bobryshev and
et.al., 2015).
This budgeting
technique can be
used by
manufacturing and
non-
manufacturing
firms effectually
for the purpose of
cost allocation and
profit assessment.
All kind of
business units lay
focus on preparing
flexible budget
with the motive to
make appropriate
changes about
future income and
expenses
according to the
trend.
It offers
opportunity in
relation to
making
evaluation of
business
performance.
Application By using this,
Unilever can
identify area or
project where
money need to be
invested for
attaining profit
within specific
time frame.
By undertaking
this, company can
clearly identify
expenses
associated with
each activity
Helps in
developing
competent
financial
framework
according to the
market or external
environmental
aspect.
Referring this,
business
organization
can monitor
departmental
performance
and identify
variances by
doing
15

comparison of
actual
performance
with
predetermined
standards.
LO4
P5 Analysing how responding to financial problems and management accounting will lead
organisation to success.
Management accounting has helped in solving financial problems through:
 Inventory management: Inventory management is concerned with the process of
ordering, storing and using organization's inventory. It involves adequate management of
all the raw materials, semi-finished and finished goods.
 Benchmarking: Benchmarking is concerned with the process of measuring products,
services, quality and sales of an organization with the industry leaders or other
competitors. It helps in overall improvement of company's operations and help them in
achieving competitive advantage.
 Key performance indicators: Key performance indicator define that how effectively an
organization is achieving its goals and objectives. KPI can be related to sales, cost of
goods sold, labour cost etc. Thus, it is imperative for organisation to identify its
indicators in order to measure the overall performance of the business.
 Financial governance: Financial governance is concerned with the policies and
procedures that an organization uses to manage business data effectively and efficiently
(Chiarini and Vagnoni, 2015). Financial governance comprises financial policies, internal
controls, workflow and data security.
Basis Unilever Tesco
Inventory management Unilever company offers wide
variety of products which
Tesco company also faced
problems related to
16

sometimes lead to
mismanagement of inventory in
the company. Unilever has
faced various problems related
to inventory management like
increased working capital, high
cost of inventory and storage
cost (Bobryshev and et.al.,
2015). Use of management
accounting has helped the
company in assisting and
forecasting the future demand
for their goods and services
which has further helped the
organisation in predicting the
level of inventory that will be
required thus reduced the
operational cost and increased
profitability of the business.
mismanagement of inventory
like excessive or deficit
amount of raw materials and
finished goods and this
further hampered the supply
chain operations of the
organisation therefore the
company adopted
management accounting to
solve the financial problem
by tracking the effectiveness
of sales and it helped the
company identifying the
products that are high in
demand (Hall, 2016). Thus, it
helped the business in
keeping more inventory of
the product which has high
demand and less inventory of
goods which has low
demand.
Benchmarking Unilever company operates in a
highly competitive environment
and with the increasing entry of
new players in the market the
sales of Unilever had decreased
significantly. Therefore, the
company adopted the policy of
benchmarking in order to
evaluate the quality of their
products with that of
Tesco company's
performance kept on
reducing incessantly mainly
because of low employee
motivation and productivity
therefore the company
adopted benchmarking
strategy in order to compare
the actual performance of the
employees with the standard
17

competitors (Nielsen, Mitchell
and Nørreklit, 2015). With the
use of management accounting,
Unilever company developed a
standardized process for
manufacturing of the products
and it further helped the
company in increasing their
sales and overall market share
thus leading to sustainable
growth in the near future.
performance. With the help
of management accounting,
the company analysed the
potential reasons for lack in
performance and then took
corrective actions in order to
increase employee motivation
and efficiency to perform the
job.
Key performance indicator Management accounting helped
Unilever company in identifying
the key performance indicators
of the organization like
manufacturing cycle time, time
taken to produce goods and
carrying cost. Further, the
company analysed its KPI and
improved them effectively and
efficiently.
Tesco company solved its
problem of identifying key
performance indicators that
are inventory sold, credit
sales done and labour costs
incurred. Management
accounting helped in
interpreting the financial
information and thus
contributed towards better
performance of the
organization (Otley, 2016).
Financial governance Unilever company had been a
part of various fraudulent
activities and regulatory
penalties that hampered the
image of the company and also
reduced the confidence of
stakeholders. Management
Improvement in financial
governance through proper
management skills helped
Tesco company in
preparation of sound
financial plans, budgets,
models and accurate
18

accounting helped in solving the
problem of financial governance
by keeping a close check on the
internal policies, rules and
regulations of the organization
which led to proper financial
governance within the firm
(Sands and Gunarathne, 2015).
forecasts. Management
accounting solved the
problem of communication in
the organization that also
contribute heavily in smooth
business operations.
Balanced score card The implementation of balanced
score card management in the
organization improved the focus
and dedication of all the team
members and everyone aligned
towards single mission and
vision.
Tesco company successfully
implemented balanced score
card in their organisation
with the help of management
accounting principles that
further contributed towards
the organisation achieving
competitive advantage (Jamil
and et.al., 2015). The score
card helped Tesco company
in identifying the potential
future threats and allowed the
company to prepare useful
strategies to counter them.
M4. Analysing how MA techniques can lead to sustainable success by responding financial
problems
By doing assessment, it has identified that MA techniques make significant contribution in
sustainable success. Moreover, tools like KPI, benchmarking, financial governance, balance
scorecard etc provides high level of assistance in assessing issues take place in monetary aspects.
Hence, by identifying causes as well as taking corrective measures within the suitable time frame
Unilever can resolve issues and get desired level of outcome or success (Ax and Greve, 2017).
Management accounting uses various tools and techniques to find solution to financial problems.
19

It performs financial statement analysis to provide information about the financial position of the
company, cost accounting to identify the cost per product or service and then adding profits to it
accordingly. Cash flow analysis to analyse the inflow and outflow of cash into the business and
thus using it accordingly. These practices help an organization in its sustainable growth and
development which proves to be beneficial in the long run and maximizes its profits.
CONCLUSION
From the above report, it can be concluded that management accounting is an important
accounting policy that takes care of all the management related operation in the organization.
Management accounting helps in coordinating operations and motivating employees in order to
increase there overall efficiency to perform the job and helps in timely achievement of goals and
objectives. The report also included various management accounting techniques like marginal
costing, cost accounting, financial planning and how they contribute in improving the
performance of the company. It also explained the importance of planning tools and their
contribution towards achievement of financial objectives. Furthermore, it involved a comparison
between Unilever and Tesco, the multi-national companies of United Kingdom and the problems
faced by them. It also included various strategies like benchmarking, KPI, inventory
management and their successful implementation with the help of management policies. Thus, it
can be stated that management accounting is an effective tool that must be used all the
companies systematically if they wish to achieve sustainable growth in the business.
20

REFERENCES
Books and Journals
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Bobryshev, A.N. and et.al., 2015. Management accounting in Russia: problems of theoretical
study and practical application in the economic crisis. Journal of Advanced Research in
Law and Economics.6(3 (13)).p.511.
Bromwich, M. and Scapens, R.W., 2016. Management accounting research: 25 years
on. Management Accounting Research.31.pp.1-9.
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